Netflix Inc has announced it has selected Microsoft Corp as technology and sales partner for its ad-supported subscription offering.
This comes as the streaming giant looks to plug slowing subscriber growth by rolling out a cheaper plan.
Shares of Netflix rose 2% to $178.06 on the news.
Netflix said in April that it would introduce a new, lower-priced version of its service in a bid to attract more subscribers.
CEO Greg Peters said Netflix chose Microsoft because of the latter’s ability to innovate and its strong privacy protections.
Microsoft is expected to power Netflix’s ad sales.